As some California billionaires criticize the proposed wealth tax, other affluent residents are voicing their support for the measure.
Dave Nixon, an ex-healthcare executive, moved from Florida to Pasadena, California, in 2022 seeking a community that better matched his principles. He belongs to Patriotic Millionaires, a group of high-net-worth Americans pushing for a more equitable tax structure, sustainable wages, and balanced political influence.
“I simply felt that priorities like education and healthcare, the elements I value for creating a more balanced society, were being overlooked [in Florida],” Nixon stated in an interview with . “I continue to believe California handles these important issues more effectively.”
The state’s newest initiative to tax immense fortunes, the 2026 Billionaire Tax Act, would apply a single 5% charge on the net worth of residents holding assets of $1 billion or more—a group that presently faces no ongoing wealth tax apart from standard income and capital-gains taxes. The proposal is estimated to generate approximately $100 billion, directing about 90% of the funds to healthcare initiatives. The rest would be allocated for education, food aid, and tax administration via a specific reserve fund.
Nixon had earlier expressed his criticism in regarding wealthy individuals threatening to depart from high-tax states like New York and Illinois for lower-tax havens such as Florida and Texas. He doubts the assertion that tax hikes will cause a mass exodus of the wealthy.
“That notion is a fabricated threat repeatedly used by millionaires nationwide to deter state legislators from increasing their taxes,” he wrote. “California’s elevated taxes on affluent individuals like myself are precisely what makes it a desirable place for me to reside.”
Numerous among the state’s wealthiest have shared their views on the suggested tax, with opinions divided. Venture capitalist Peter Thiel along with Google founders Larry Page and Sergey Brin have left the state for Florida. Conversely, other billionaires like NVIDIA CEO Jensen Huang have stated that leaving due to taxes “never crossed [his] mind.”
Questioned about the recent moves by Google co-founders Sergey Brin and Larry Page, Nixon remarked, “It’s sickening and greedy.”
“California has been highly favorable to them, fostering an innovative economy from which, for instance, Google’s founders have greatly profited,” Nixon said. The state has historically been a hub for Big Tech, offering incentives for companies to remain and expand through various programs. In 2025, California entered agreements with Google and other firms to introduce AI training into high schools, community colleges, and universities.
“I am simply let down by anyone who fails to recognize the duty to contribute their fair portion in taxes,” Nixon added.
‘Get them to pay their fair share’
Maureen Kennedy, also a Patriotic Millionaires member, is a Marin County philanthropist who has called California home since 1996. A former federal housing policy official during President Bill Clinton’s administration, she believes the state must find solutions to counter rising healthcare expenses. She supports the bill’s underlying logic, which would direct the tax revenue to healthcare, education, and food assistance.
“We live in a high-cost state, where [healthcare costs] have been rising faster than wage growth,” Kennedy noted. Health expenditures climbed by 7.5% from 2022 to 2023, while average wages increased by 4.43% in the same span, as per official data. A Mercer report indicates employers anticipate healthcare costs to rise by 9% in 2026 if no cost-reduction efforts are made.
Roughly 3.4 million Californians are at risk of losing MediCal coverage after the One Big Beautiful Bill Act reduced Medicaid funding by nearly a trillion dollars over the next decade and imposed new work mandates.
“Working people with higher incomes, like I was before retiring, pay a significant portion of their earnings in California, but the billionaire class does not contribute at that level,” Kennedy stated.
According to a 2025 paper published by the National Bureau of Economic Research, billionaires paid an average tax rate of 24% from 2018 to 2020, compared to 30% for the overall population and 45% for top earners.
“The American spirit is founded on following the rules and paying your fair share,” Kennedy said. “This proposal is a method to, on a one-time basis, ensure they meet that obligation.”